NEW JERSEY, NJ – Danish company Ørsted announced today its decision to halt the development of two offshore wind turbine projects, Ocean Wind 1 and 2, located off New Jersey’s coast. The decision was influenced by “anticipated impairments on its US portfolio” amounting to approximately $2.266 billion. Factors contributing to this decision include disruptions in supply chains and rising interest rates.
New Jersey Governor Phil Murphy received frightening news on Halloween night, when 0rsted announced they were sinking their New Jersey wind farm project.
Rep. Chris Smith (R-Manchester) commented on the development, emphasizing the financial challenges faced by Ørsted despite significant taxpayer subsidies. Smith noted, “Ørsted’s decision exposes the economic challenges and potential environmental risks of such large-scale wind turbine projects.”
Smith further elaborated on the potential environmental and safety concerns associated with offshore wind turbines. He highlighted the threat they pose to sea mammals, the fishing industry, tourism, and national security due to potential radar interference.
On July 20, the House of Representatives passed an amendment introduced by Rep. Smith, which seeks assurance from President Biden or his representative that offshore wind projects will not compromise radar systems crucial for the Federal Aviation Administration or the Armed Forces. This legislation awaits review in the U.S. Senate.
Smith also referenced a Bureau of Ocean Energy Management (BOEM) analysis from 2020, which identified potential radar interference from proposed wind farms. Another study from 2017 echoed these concerns, emphasizing the unique challenges posed by offshore wind turbines compared to their land-based counterparts.
Additionally, a 2022 study from the National Academy of Sciences, Engineering, and Medicine indicated a lack of substantial research into wind turbine generator mitigation techniques.
Last March, the House endorsed another amendment by Smith, which called for an independent review by the Government Accountability Office (GAO) into the potential impacts of wind turbines on various sectors. The results of this audit are expected to be published soon.